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Buying a Second-Hand Car? Remember These Facts Before Taking Used Car Loan

  • The COVID-19 pandemic coming back with a second wave has made travelling through public transport extremely dangerous. Maintaining social distance in a bus or auto is almost impossible. So, a vehicle becomes a necessity for every household. It gives you the freedom to move when you like, be it a big city or a small town. Purchasing a used car from your savings might feel like splurging on extravagance. But you have the option of buying a car loan without touching your savings. Now, you can get low-interest used car loans too!

    If you’re worried about financing your vehicle, you can now get easy second-hand car finance from leading lenders in the market like Muthoot FinCorp. A used car loan allows you the freedom to buy the car you want by paying small instalments according to your monthly budget. You can own a car with affordable used-car loan interest rates and flexible repayment options.

    Just Get the Following Things Done and Apply for your Vehicle with Just a Few Steps:

    1. Check your eligibility for a used car loan
    2. Check the used car loan EMI calculator for a suitable loan structure
    3. Get all the documents in order
    4. Visit the lender or call their customer care centre
    5. Begin the process of taking a used car loan as advised by the lender’s representative.

    Car owners are usually concerned with the lifespan of their vehicles. It is perfectly understandable because it is clear that a car comes with plenty of costs different from the initial purchase price. Buying a used car, especially with a used-car loan, needs some research and inspection. The vehicle shouldn’t incur losses to you. The car should be safe and reliable, suit all your needs.

    Here are a Few Things You Should Keep in Mind:

    1. Examine the Vehicle’s Condition: A car which is about 3-5 years old is the best buy. Check the vehicle’s odometer and compare it to the manufacturing year. Next, check the engine’s life. The vehicle should start without any hiccups. A healthy engine won’t emit any smoke during acceleration. Check for oil spouts from the exhaust. Check the entire vehicle leaks. Choose tubeless tyres so that you can drive to the nearest service point in case of a puncture.
    2. Registration Documents Check all papers properly before taking a used car loan. Verify the registration papers to transfer the vehicle’s ownership. The registration certificate is also used for the same reason. The engine and chassis number on the vehicle should match with that on the registration papers. The seller should take all the necessary legal steps for transferring the registration to the state of use.
    3. Vehicle Insurance: Check for the car’s insured value in the policy. Look for prior accident claims and if any no-claim bonus is available. This factor will ease negotiations. The insurance certificate is essential for transferring ownership.
    4. Potential Modifications: A regular change of fluids and oils is a must. The first thing to do after buying a second-hand car is to change all the fluids right away. Fix lights, spark plugs etc. Any sign of rust, water entry through cracks and holes, or other trunk wear should also be checked and fixed.
    5. Insurance Transfer: You will have to transfer the insurance in your name. When you contact the insurance company, they will do the needful.
    6. Written Contract: For this, you should fill and submit Form 29 – 30, issued by the RTO in the jurisdiction you are purchasing your car in. Both old and new owners should sign the form. If the vehicle has been registered in a different jurisdiction, then a NOC from that jurisdiction’s RTO will be required in the process. It registers the transaction and will be needed to get the used car loan approved.
    7. Vehicle Maintenance Records: Examine the service book to check the history of service records of the vehicle. If the car is CNG/LPG fitted, the Bi-fuel certificate and a valid Pollution Under Control (PUC) certificate of the car should be available.

    You need to do extensive homework, using online and offline resources, before buying a used vehicle. Reliable NBFCs like Muthoot FinCorp offer excellent deals for second-hand car finance with low-interest rates, hassle-free procedures, and faster approval of loans.

    Originally Posted on: financesbuzz.com - Muthoot FinCorp

    Harshit Agrawal 2-May-2021 1600 Views

About Author

Harshit Agrawal -
Harshit Agrawal heads digital marketing for Muthoot Pappachan Group from its head quarter based in Kochi, India. He has managed digital marketing & activations for brands such as Maruti Suzuki, Hero MotoCorp, Bharti Airtel, Google, Mankind Pharma...read more

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